Starting on an upbeat note, Nikola Matic, showed that growth in the US cosmetics and toiletries market is back, up 11% year on year, and the best year in more than a decade. Aggressive promotional activity, compelling technological advances and social media have all contributed to halting the decline of 2009. Europe is still the largest market, but the unsettled financial crisis may still impact on global growth, and it is losing out to China and Brazil.
Skincare is the largest and fastest growing product category, representing 29% of total manfacturer sales and providing rich opportunities for raw material suppliers. Describing the drivers for growth, Matic, commented: “Consumers are gaining confidence again and investing in themselves. They are more knowledgeable and ‘label’ reading is no longer the exception. Consumers make educated choices.” He also cited the development of professional skincare in spas and wellness centres.
“Consumers expect results from skincare and this impacts on the speciality actives market,” continued Matic, pointing out that a “green” provenance including packaging and sustainability is a major market driver. The specialty actives market grew by 5.7% CAGR between 2007 and 2010: botanicals, biotechnology products marine ingredients, proteins and peptides and enzymes and coenzymes are all driving growth, especially in the area of anti-ageing. Looking forward, the specialty actives market in Europe is expected to grow at an average annual rate of 4.6% between 2011 and 2015.